oppn parties RBI Is Trying Hard, But The Issue Has Escalated Beyond What It Can Do

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October 17, 2026

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  • Allahabad HC said that the UP Police is acting as law unto themselves as they detained a person unlawfully even before his arrest
  • Kolkata witnesses traffic snarls on the first day of the Durga Puja festival as revellers start pnadal-hopping
  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
  • Delhi Police detained Cockroach Janta Party founder Abhijeet Dipke, Neha Bora of AISA, student leaders and supporters ahead of a rally in Connaught Place demanding Chief Election Commissioner Gyanesh Kumar's resignation. The protest followed the detention and jailing of two CJP leaders earlier in the week over demonstrations at Jantar Mantar
  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
  • Indian equity benchmarks extended their recovery on Friday, with the Sensex rising 413.66 points to close at 74,729.27 and the Nifty 50 gaining 148.80 points to settle at 23,146.15. Information technology shares, including Tech Mahindra, Infosys and TCS, helped lift the indices
  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
  • Indian wrestler Komal won bronze in the women's 59 kg category at the Under-23 World Wrestling Championships in Las Vegas, defeating Kazakhstan's Viktoriia Khusainova 7–2. Fellow Indian Amruta Pujari advanced to the women's 72 kg final after recording two pinfall victories
  • Indian shuttler Jagsher Singh Khangurra secured a bronze medal at the BWF World Junior Badminton Championships in Cairo
  • The Supreme Court of India upheld the Bombay High Court's decision quashing the 2020 write-off of ₹8,415 crore in additional tier-1 bonds issued by Yes Bank (Yes Bank). The court ruled that the bank's administrator lacked the authority to extinguish the bonds under the final reconstruction scheme, strengthening bondholders' claims
  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Delhi HC refuses to ban CJP's Tiranga rally at Central Park in Connaught Place today /////// Police says will control and regulate it /////// NDMC closes the park for the public on Friday and Saturday
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RBI Is Trying Hard, But The Issue Has Escalated Beyond What It Can Do

By Sunil Garodia
First publised on 2020-04-17 19:27:46

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

The RBI governor held a press conference today to announce further measure to shore up the financial system that is burdened, like the rest of the economy, by the Covid-19 crisis. He announced a slew of measures like cutting the reverse reporrate by 25 basis points to make it 3.75%, releasing Rs 50,000 crore liquidity support for NABARD (Rs 25000 crore), Sidbi (Rs 15000 crore) and National Housing Bank (Rs 10000 crore), declaring that moratorium granted on existing loans by banks will mean that they would not fall under the 90-day non-performing asset norm, bringing down the liquidity cover ratio requirement of banks from 100% to 80%, and asking banks not to make any further dividend payouts until the situation improves.

While these are all good measures that will bring additional liquidity in the market and ease the situation a bit, the economy is now tottering on the edge and these macro measures are not going to help much. It is true that reducing the reverse repo rate will make it unattractive for the banks to park their money with the RBI and they will try to lend it to businesses. But since businesses are facing tough times, new projects or additions to existing projects will not happen in a hurry. Most firms will borrow now for only working capital needs as devoid of cash, many are finding it difficult to make payments for salaries, rents and other monthly expenses.

There is no doubt that these measures will ease the pressure on the financial system, but liquidity by itself is not the panacea for the troubles being faced by companies or individuals now. As the pandemic shows no signs of abating, the RBI would do well to extend the moratorium period from 90 days to 180 days. It should also direct banks not to charge usurious rates of interest for the delay as the situation is extraordinary and beyond the control of anyone. It should be recognized that this is not willful default but one that is forced by circumstances. Despite recent measures to restart some economic activity, the economy as a whole is not likely to return to any kind of normalcy before December, if not later. The RBI should keep that in mind when it announces any further relief measures. 

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